Traders Are Shorting This Altcoin On Binance!

Binance, the world’s largest crypto exchange, is having a hard time due to investigations and regulatory pressure in the US. This creates uncertainty, doubt and fear over the native token of the crypto exchange. Traders who see this as an opportunity are opening large short positions for the altcoin.

Traders are opening a short position for this altcoin on Binance

As you follow on Kriptokoin.com, the regulatory pressure on the giant cryptocurrency exchange Binance continues. As such, the exchange’s native token, Binance Coin (BNB), is potentially facing another wave of fear, uncertainty, and suspicion (FUD). Because on Binance, the open interest on the short side continues to increase exponentially. Interestingly, this increase in short orders is happening without any major news or updates on Binance or BNB. According to experts, this indicates that the current price action lacks a solid foundation. This is reminiscent of the increase in short volume seen in March.

Experts cite strategies to hedge against the recent EDU launchpad event as one of the possible reasons behind this surge in shorts. Binance recently announced the end of the subscription period for Open Campus (EDU) on its launchpad platform. In this context, Binance used the following statements in its announcement:

Open campus EDU Binance Launchpad has 1 hour until subscription expires.

What is behind the increase in short positions?

According to experts, investors are trying to hedge their positions and mitigate the potential risks associated with EDU launchpad activity. That’s why he’s probably turning to shorting BNB as a hedge strategy. This may explain the sudden increase in short orders on the Binance platform, even if there is no negative news or development regarding BNB or the stock market.

The exact impact of this increase in short positions on BNB’s price is difficult to predict. That said, it’s crucial to keep a close eye on relevant news that may affect the market and investor sentiment. As short sales continue to increase, it is possible that the market, in particular, will react negatively to the EDU launchpad event or other unforeseen developments. Therefore, it does not make sense to ignore the potential for another wave of FUD.

At press time, BNB was trading at $323.43, down 3.57% on a daily basis. However, it has gained 0.35% in the last 24 hours. Also, the altcoin is still in the greener zone in weekly perspective. Despite the short position volume breaking all local highs, it really didn’t perform exceptionally badly.